Exploring Consumer Motivation in Online Social Lending for Development

This study introduces the emerging concept of Online Social Lending for Development (OSL4D) and explores the motivations of those who participate in it. OSL4D is a social phenomenon that has materialized at the intersection of the consumer behavior, non-profit management, information technology, and international development disciplines. At the core of OSL4D is the idea that the internet can facilitate small-scale lending by socially-minded investors from around the globe to micro-entrepreneurs in developing countries in an effort to alleviate poverty. It has raised numerous important theoretical issues about the evolving nature of charitable giving, the motivation of consumers, as well as the portrayal of the working poor in developing countries. The authors consider the different theoretical motivations to participate in social lending and, through content analysis of consumer statements, conclude that OSL4D consumers are principally intrinsically motivated to make a small difference in the lives of the working poor.